Every new year provides potential opportunities as well as risks for small businesses. What should your company expect in 2020? How can you be prepared?
After combing through various predictions of top business trends, we’ve compiled this list of New Year’s resolutions small business owners should consider for 2020:
Small businesses are known for driving innovation, being bold, and investing in growth. It’s this entrepreneurial spirit that keeps a booming U.S. economy fueled. But, business leaders might want to practice extra prudence next year when it comes to their finances. What should you be considering?
Bump up your continency fund – It’s always wise for a business to have funds in arrears to help deal with unplanned costs. As we start a new year, it makes sense to have more on hand to be better prepared for whatever may come.
Trim down your fixed costs – Small businesses will want to remain as flexible as possible next year. Companies can reduce how much cash flow they have invested in long-term commitments. Too much money tied up prevents lowering costs if something unexpected happens.
Free up working capital – Other costs to consider reducing is the capital you have sunk in labor and logistics. For example, moving your logistics to contract labor solutions can be considerably more cost-effective. By choosing a local outsourcing service, you can gain more cash to spend on revenue-generating activities.
With unemployment at its lowest since 1969, and expected to stay that way into next year, businesses can’t afford to lose capable employees. But do you really know what motivates today’s workforce to stick with you? It might not be what you think! Data shows that what keeps people engaged and happy at work tends to be about more than their paychecks.
Boosting morale takes something additional to the traditional benefits package. Employees want to know what they do matters to the company. Employers can convey that by offering a flexible environment and perks like working from home, non-traditional work hours, health and fitness options, affordable child care, or more PTO (personal time off).
Finally, consider the spaces where your employees work. Are they mood-boosting and energizing, or dull and monotonous? The ambiance of one’s surroundings can make a significant difference in their work performance.
With so much technology to help a business operate more effectively, some company leaders find it challenging to decide what they need. Technology is undoubtedly a boon to enterprises, but it can also be expensive for an already-stretched budget.
Small business often gets by without an IT department; they simply can’t afford it, so they need viable options. Some companies have elected to hire for versatility, i.e., an energetic person with a passion for keeping up with the latest technologies, but who can also play other roles in the company, such as sales, marketing, or customer service.
A business can also opt to outsource its technology-related items so it can focus on the essential areas of strategy and planning, sales, and customer service. From infrastructure and cloud computing, mobile applications and web development to CRM (customer relationship management), voice recognition and AI (artificial intelligence), these contract companies can be a cost-effective channel for small business technology needs.
The word-of-choice among millennials into 2020 will continue to be “authenticity.” Millennials will be more demanding than ever that businesses interact with them in a genuine way.
Why should you care about what millennials consider essential? Consider this fact from the Washington Post: this year, millennials will take over Boomers as the largest adult population in the U.S. With 73 million millennials projected, there’s a lot of purchasing power this generation will bring to the table in 2020 and beyond.
Businesses can create connections with this generation by finding what they and your company mutually value. According to a Nielson report, millennials care about: family, philanthropy, society (giving back), the environment, and being an engaged part of their community.
Take some time to understand what your company values. How can you demonstrate your authenticity and create those real connections with this valuable customer segment?
Ohio Valley Goodwill specializes in contract labor solutions that give greater Cincinnati businesses opportunities to grow while simplifying operations and lowering costs. Our massive labor pool works at any scale and responds to changing needs quickly. And, as a non-profit organization, we are an economical resource offering a value that’s hard to beat.
Furthermore, a business partnership with Ohio Valley Goodwill is a partnership you can feel great about! Our outsourcing services exist to provide meaningful employment opportunities to individuals with disabilities, helping them achieve personal and vocational success.
Put Goodwill to work for your business today! Contact us to learn more about our contract labor solutions and receive a free quote.